Zara to double production in Russia in 2017

April 14th 2017 | Multiple countries | Retail | Inditex

Zara, owned by Industria de Diseño Textil SA (Inditex), plans to double its production in Russia in 2017, according to media reports citing a Russian minister and the head of the unit's Russia division, on April 13th. Viktor Evtukhov, Russia's deputy minister of industry and trade, and Lucian Dorobantu, Zara's chief of Commonwealth of Independent States, said that the luxury brand aims to sell about 1m Russian-made products this year.

Mr Evtukhov said that the Spanish retailer had signed two agreements to make its branded clothes and home textile products in Russia. He added that the company planned to expand its presence in the country by partnering with domestic companies. Mr Evtukhov had told Russia's TASS news agency in January that Zara would assess the manufacturing facilities of a list of local firms compiled by the government.

The Russian government has reportedly asked Swedish brands such as IKEA Group and Hennes & Mauritz AB (H&M), along with Zara, to localise production. It is also looking for suitable production facilities for France's Auchan Holding SA-owned Decathlon Group.

Only 20-25% of clothing and footwear sold in Russia is currently manufactured in the country. The government's light-industry development strategy, which encourages investment in sectors such as apparel-making, is designed to raise this figure to more than 50% by 2020.